However, the strength of Mosaic's convictions were tested late last year when Santos showed no interest in participating in a proposed drilling program. Mosaic took the bit between the teeth and decided to drill the prospects nonetheless - on what is known as a 'sole risk' basis.

Mosaic assumed operatorship of the well (in fact the entire block) and responsibility for the entire drilling costs, which is a pretty brave move for a small company. The upside is that the sole risk party gains the entire prize, with the recalcitrant partners paying a hefty premium if they wish to resume their interest.

Mosaic's beliefs were founded on a combination of geological and technical trains of thought - that the tight but fragile reservoirs of the Surat Basin could be exploited with a light handed drilling approach, in this case drilling underbalanced using nitrogen as a drilling medium instead of the heavy and often destructive conventional drilling muds.

Managing director Howard Brady is well and truly vindicated in the choice and it was only the last well in the program that, while finding oil, did not prove commercial.